CR 92-253 Inspection Agreement Wayzata
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council Report No. 92-253
December 8th, 1992
INSPECTION AGREEMENT WITH WAYZATA FOR 1993
Proposed Action.
staff recommends the following motion: Move to extend the current
aqreement between the City of Wayzata and City of Hopkins for
inspection services and authorize the Mayor and City Manaqer to
enter into a contract with Wavzata for insoection services for the
budqet year 1993.
Approval of this motion will allow the Mayor and city Manager to
execute an agreement with Wayzata to provide continued inspection
services to Wayzata for the 1993 budget year.
Overview.
The City of Wayzata lost their Building Official and has contracted
with the City of Hopkins for inspection services since August of 1991.
The current contract for inspection services expires on December 31st
1992. Wayzata has recently notified the staff they would like to enter
into an agreement thru the 1993 budget year. The proposed 1993
contract is essentially the same as used in 1992.
The current contract has generated approximately $23,000.00 in revenue
since January for the inspection services provided. The low permit
activity in Wayzata this past year allowed the department to provide
the service with existing staff. The department incurred minimal added
costs with little or no loss in service to Hopkins residents. If
permit activity increases significantly and additional temporary part
time staff is warranted to maintain service levels in 1993, the
increased feels over and above 1992 will cover any additional costs.
The fees generated from Wayzata in 1993 will help the department meet
or exceed budget revenues projected and maximize the utilization of
staff.
Primary Issues to consider.
o will the fees collected cover the associated costs.
o Will additional staff be necessary
o Will the service to Hopkins residents suffer.
o What liability will the City incur.
o What does the staff recommend.
o Alternatives
Supportinq Information.
o Proposed agre~ment.
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Tomas Anders'"on .
city Building Official
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CR 92-253
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Primary Issues to Consider.
o will the fees collected cover the associated costs?
The fee structure proposed should allow us to more than cover our
costs. The current agreement we have with Wayzata is a straight
55 percent of all the fees they collect for their permit activity. We
are proposing a similar arrangement but requesting they raise there
plumbing and mechanical fee structure. We have looked at the fee's
Wayzata has generated over the last several years and feel the 55
percent will more than cover our costs. The fee's collected in 1992
covered all the time spent by staff doing the inspections. The
contract with Wayzata has generated approximately $ 22,000.00 in
revenues in the 12 month period beginning in october of 1991. Wayzata
will still be required to group inspections and attempt to schedule
them first thing in the morning and last thing in the afternoon. This
is in the agreement to reduce driving time since three of the Hopkins
inspectors live beyond Wayzata.
o Will additional staff be necessary?
. It will not be necessary to hire any permanent or full time staff. The
Inspection Division will be able to handle the additional work load
with existing staff during the slower winter months. It maybe
necessary, however, dependant on permit activity next year, to hire
additional temporary help during the summer months to insure no loss
in service to either Wayzata or Hopkins residents. The department has
researched the possibility of hiring if needed an intern to assist
with the more routine activities in both cities. Several of the larger
cities do use this method with great success. These individuals are
available thru the community college program at a very low cost in
order to gain experience. We have been unable to utilize this method
in the past because of our low construction value and the complexity
of the projects. with the addition of Wayzata's building activity if
needed,we will be able to utilize an intern and thereby maximize
utilization of our Staff. Permit revenues gained from Wayzata will far
exceed any additional temporary employee costs we might encounter and
the excess will augment our current full time employee costs.
o will the service to Hopkins residents suffer?
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We feel confident that this project can be taken on for the budget
year 1993 with little or no drop in service to the Hopkins residents
if properly managed. The division will need to monitor very closely
the permit activity and expected activity. If permit revenues and
activity exceed certain levels that justify additional temporary
staff, we will need the flexibility to hire a temporary intern. The
Inspections Department has issued more permits in 1992 than in 1991
but has not had the one or two large projects we customarily do.
Further, wayzata's permit activity was considerably below normal for
them in 1992 so additional part time help was not needed in 1992.
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What liability will the City incur?
As in the current contract, the City of Wayzata will be required to
hold harmless and indemnify the City of Hopkins, its employees and
Council against all losses, claims, damages or expenses incurred,
including legal fees, arising as a result of this agreement. The city
of Hopkins must maintain workers compensation on all of the employees
assigned to inspections in Wayzata. If the Council approves an
agreement, workers compensation will be automatically extended to this
function by our insurance carrier at no additional cost to the city.
o What does the staff recommend?
The staff recommends the Council authorize the Mayor and city Manager
to review and execute an agreement with Wayzata for the 1993 budget
year. There appears to be adequate staff to perform inspection
services without affecting service to the Hopkins residents. The
funds generated will exceed any additional temporary help that might
be necessary and therefore will help the department's budget revenues
in 1993.
Alternatives
1. Approve staff's recommendation.
2. Disapprove staff recommendation. staff will inform
Wayzata that the City of Hopkins will not be able to
provide inspection services in 1993.
3. Continue for further information. Due to the expiration
of the Wayzata's contract on December 31st, Wayzata is in
some what of a difficult situation and needs to have the
city of Hopkins continue service's until either a contract
relationship is approved or they hire their own Building
Official.
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AGREEMENT FOR
BUILDING INSPECTION SERVICES
This agreement is made and entered into this day of
, 1992, by and between the city of Hopkins, Minnesota
(hereinafter "Hopkins"); and the City of Wayzata (hereinafter
"Wayzata") and is made under and by virtue of Minn. stat. 16B.62,
Subd.1 and 471.59, Subd. 1.
Witnessed:
WHEREAS, Wayzata is desirous of contracting with Hopkins for
the performance of the hereinafter specified building inspection
services within Wayzata; and
WHEREAS, Hopkins, has agreed to render such services on the
terms and conditions hereinafter set forth; and
WHEREAS, an agreement such as this is authorized under and
by virtue of the provisions of Minn. stat. 16B.62, Subd. 1 and
4 71. 59, Subd . 1.
NOW, THEREFORE, Hopkins agrees that it will provide building
inspection services for Wayzata subject to the following terms
and conditions:
1. Definition of Buildina Code. The "Building Code"
administered and enforced under this agreement shall mean
the current edition of the Minnesota state Building Code
as adopted by the Minnesota commissioner of
Administration from time to time pursuant to Minn. stat.
16B.59-16B.73 including the rules and codes
adopted by reference therein.
2. Adoption of Buildinq Code. Wayzata agrees to adopt by
ordinance the Building Code as defined above, and to keep
such adoption current as new model code editions are
subsequently adopted by the Commissioner of
Administration. Wayzata may adopt the standard fee
schedule or any alternate schedule as provided by 2MCAR
1.l01l (UBC 304a). Hopkins shall inform Wayzata whenever
the ordinance of Wayzata must be revised to include a new
or revised code edition.
3. Buildinq Official Services
The services to be provided by Hopkins shall include
pre-construction plan review and on-site construction
inspection as required for enforcement and administration
of the Building Code. Specifically included are all
services relating to general construction, plumbing,
heating, ventilating, air conditioning and refrigeration
work for which a permit is required under the Wayzata
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building code. Specifically excluded are any services
relating to administration or enforcement of the
National Electrical Code, which is under the juris-
diction of the state Board of Electricity, Housing
and Fire code enforcement or any other Compliance code
inspections not performed in connection with issuance
of a building code permit. The services shall be
performed by the Hopkins Building Official, ("BUILDING
OFFICIAL") or by a qualified building inspector
("BUILDING INSPECTOR") working under his direct
supervision.
4. Administration Procedures. This section is set forth to
clarify the responsibilities of each participant and to
establish procedures for issuing permits and performing
inspection service.
A) Responsibilitv of Permittee (Owner or Contractor):
1. Provide pre-permit confirmation of all Building
Code requirements with sufficient site and construction
design information as may be required by Wayzata and/
or the Building Official.
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2. Perform all construction in compliance with all
Building Code requirements.
3. Pay all required license, plan review, permit and
inspection fees to Wayzata.
4. Call for all required inspections with sufficient
notice for proper scheduling (24hr. notice).
B) Responsibilitv of Wavzata
1. Administer and enforce all zoning requirements
including but not limited to approval of site plan,
building size, location and use, and general
performance standards.
2. Administer all contractor licensing requirements.
3. Issue all permits and collect local permit fees
and state or regional charges including Metropolitan
Waste Control SAC charges and State Building Code Sur-
charges.
4. Maintain permanent records.
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5. Complete all periodic reports and governmental
surveys.
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6.Prosecute all violations.
7.Schedule inspections during regular business hours
and endeavor to group inspections for first thing in
the morning or last in the afternoon to minimize travel
time for the inspectors.
C. Responsibilitv of Hopkins
1. Perform all pre-construction building plan
reviews.
2. Perform all construction inspections required for
Building Code enforcement.
3. Provide inspection reports and other information
for the permanent records kept by Wayzata.
4. Assist in all Building Code violation prosecutions
with the Building Official's time, records, and expert
information. Inspection services provided under
paragraph 9-C below, shall be compensated separately as
provided therein.
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5. Assist Wayzata to Provide general Building Code
information to the citizens of Wayzata.
6. Provide inspection personal for up to eight hours
per week of office time at the Wayzata City Offices on
dates and at times mutually agreeable to both Hopkins
and Wayzata. If the Inspector is not needed at the time
established for office hours, the Inspector can conduct
other duties, including inspections, during this period
of time.
7. Subject to 9-C below, provide other inspection
services or technical recommendations related to
building code matters as may from time to time be
requested by Wayzata.
D. Procedure for Buildinq Code Administration.
1. Wayzata shall review all architectural drawings,
specifications and site plans and certify to the
Hopkins Building Official that the same are in
compliance with applicable zoning and land use
ordinances.
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2. The Building Official or a qualified Building
Inspector working under his direct supervision shall
review the building construction plans for conformance
with the Building Code and approve, or disapprove same
indicating reasons for such disapproval.
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3. Wayzata, upon approval of the plan by the Hopkins
Building Official and consistent with all local
requirements, issues the Building Permit, collects the
plan review fee, the local and regional fees and
notifies Hopkins of the permit day, number and other
pertinent information.
4. The Permittee commences construction and requests
all required inspections in accordance with the
procedures set forth in chapter 3 of the Uniform
Building Code..
5. The Building Official or a qualified Building
Inspector working under his direct supervision performs
required inspections and notifies Wayzata of monthly
progress, any violations, and final completion.
6. Wayzata, upon final approval by the Hopkins
Building Official, and consistent with all local
requirements, issues the certificate of Occupancy.
5.
Administrative Responsibilitv. The daily adminis-
tration of the building inspection services rendered
to Wayzata shall be under the sole direction of
Hopkins. The degree of services rendered, the stan-
dards of performance and other matters relating to
regulations and policies shall remain under the
control of Hopkins. The services rendered to Wayzata
under this agreement shall be performed at the city
offices of Hopkins, except for required on site
inspections or as otherwise specifically noted in this
agreement. Hopkins shall submit to Wayzata a monthly
report of services rendered and charges due, in such
form and detail as Wayzata may reasonably require, as
well as periodic suggestions regarding other matters
relating to the inspection service.
6. Communications, Eauipment and Supplies. Hopkins shall
provide the necessary supplies, equipment and vehicles
to the Hopkins Building Official, except Wayzata shall
provide any necessary supplies which must be specially
printed for Wayzata such as permits, forms, etc.
Personnel, Emplovees of Hopkins. Personnel assigned
to perform the building inspection services for Wayzata
shall be employees of Hopkins which latter city shall
assume all obligations arising our of the employment
relationship, including but not limited to salary,
worker's compensation, PERA, withholding tax and health
insurance with respect to such personnel. Wayzata shall
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not be required to furnish any fringe benefits or
compensation whatsoever to Hopkins employees.
8.
Authoritv of Insoection Personnel. The Hopkins
Building Official and Inspectors shall be provided
specific authority by Wayzata to administer and enforce
the Building Code as provided by this agreement. Such
authority shall be granted by proper action of the city
of Wayzata.
9.
Cost to Wavzata. For and in consideration of the ren-
dition of the services described herein, Wayzata shall
pay Hopkins as follows:
A.
BUILDING INSPECTION SERVICES
It is agreed Wayzata will pay Hopkins 55% of the
established building, plumbing, heating, and gas
fitting, permit fee's payable to the City of Wayzata.
The fee schedules currently adopted by Wayzata and
attached as appendix B shall be the minimum
established fee schedule used by Wayzata for
calculation of compensation due Hopkins for the
services rendered under this agreement. If Wayzata
should adopt a new fee schedule establishing fees that
arein excess of those shown on Appendix B the newly
adopted fees that are in excess shall become the
established fees used for compensation due Hopkins.
Hopkins is responsible for all mileage and fees for the
Inspector.
B. PLAN REVIEW SERVICES
It is agreed that Wayzata will pay Hopkins an
additional 55% of Wayzata's established building permit
fees for its plan review services. This fee will be
paid by Wayzata when a plan is required to be submitted
by section 302 b of the Building Code. In addition
Wayzata agrees to pay Hopkins an additional fee to
cover the costs of any required outside third party
structural plan reviews when these outside services are
deemed necessary by the Hopkins building official.
C.
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OTHER INSPECTION SERVICES
Upon request by Wayzata, the Building Official or
Building Inspector will assist Wayzata in other
inspection services for inspections that are not
performed in connection with a building permit such as,
hazardous buildings, fire code enforcement, housing
code enforcement, compliance inspections, etc. which
services will be paid on an hourly basis. The hourly
rate shall be the normal hourly rate of the employee
assigned plus 40% fringes.
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10. Hold Harmless and Indemnification Aqreement.
Wayzata shall indemnify and hold harmless Hopkins, the
City Council of Hopkins, and the agents and employees
of the City of Hopkins from and against all claims,
damages, losses, liabilities or expenses, including
attorney fees arising out of or resulting from the
performance of the services to be provided pursuant to
this agreement
11. Termination or extension of Aqreement The term of this
agreement shall commence on the 1st day of January, 1993
and shall terminate on the 31st day of December. 1993.
Wayzata shall pay for all services rendered after the
termination date which might be necessarily incurred to
complete work begun before the termination date.
Wayzata agrees to pay to Hopkins any expenses, including
reasonable attorney's fees, incurred by Hopkins in enforcing
the terms of this agreement.
IN WITNESS WHEREOF, the parties have executed this
agreement in duplicate this day of , 1992,
and shall remain in effect until the 31st day of December, 1993.
ATTEST:
CITY OF HOPKINS
Mayor
City Manager
CITY OF WAYZATA
Mayor
city Manager
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APPENDIX B
CURRENT WAYZATA FEE SCHEDULE
Description
Adopted
Proposed
Building Code
Building permits (based on valuation) No Change
Up to$500
$ 501
$ 2,001
$ 25,001
$ 50,001
$ 100,001
$ 500,001
$1,000,001
$ 2,001
$ 25,000
$ 50,000
$ 100,000
$ 500,000
- $1,000,000
and up
$ 15.00
$ 15.00+$2.00/$ 100
$ 45.00+$9.00/$1,000
$252.00+$6.50/$1,000
$414.50+$4.50/$1,000
$639.50+$3.50/$1,000
$2,039.50+$3.00/$1,000
$3,539.50+$2.00/$1,000
Plan Check 65% of Building Permit Fee
No Change
Plumbinq Permits
1st Fixture
Additional Fixtures
$10.00
$ 4.00ea.
$10.00
$ 4.00ea.
Heatinq Permits (based
Up to $ 1,000
$ 1,001 -$ 5,000
$ 5,001 -$ 50,000
$ 50,001 -$500,000
$500,001 and up
on valuation) No Change
$ 15.00
$ 15.00+$1.00/$ 100
$ 55.00+$3.00/$1,000
$190.00+$2.00/$1,000
$1,090.00+$1.00/$1,000
Gas Fittinq Permits
Pipe less than 2 inches
For 3 openings
Additional Openings
Pipe exceeding 2 inches
For 3 openings
Additional Openings
other Inspections and fees
Inspections outside normal
hours (min. 2 hrs.)
Reinspection
Other inspection/review
$ 4.25
2.00
$ 4.25
2.00
$12.50
2.50
$12.50
2.50
$15.00/hr.
$15.00
$15.00jhr.
$15.00jhr.
$15.00
$15.00/hr.
Underground tank removal
$25.00